Part 1 - AHK Greater China

Transcription

Part 1 - AHK Greater China
IN THIS ISSUE: 12 PAGES OF UPDATED BENEFIT PARTNER INFORMATION TO PULL OUT
June - July
3 | 2009
Engineering for Speed
China is Building the World’s Largest High-Speed Railway Network
Harbin and Ice | Yingtan and Water | GCC’s Shenzhen Office Opening | City Tour Dongcheng
German Bell Thomas Berchtold Marco Bettega Fabian Betto Monika Bitsche
2000: 1st Place “Manager Magazin”, Design Annual Report * 1st Place “Manager Magazin”, Ranking s-dax Annual Report * 2001:
Roman Bösch Jennifer Dai Roland Darjes Nick Diehl Cornelia Engler Christina
1st Place “Manager Magazin”, Total Ranking Annual Report * 1st Place “Manager Magazin”, Ranking m-dax Annual Report * 2nd Place
Erne Bianca Fels Anuschka Fink Hubert Fink Klaus Forschinger Peter Förg
“Manager Magazin”, Total Ranking Annual Report * 2002: 1st Place alc (Austrian Leading Companies) Most Dynamic Businesses
Michael Fröhle Fabian Gantert Samantha Groeblacher Yvonne Hanschitz-Orasch
(Category: “Goldener Mittelbau”) * 2nd Place “Manager Magazin”, Ranking s-dax Annual Report * 3rd Place “Manager Magazin”,
Matthias Helbach Cornelia Held Bettina Jäger Robert Kastner Cornelia
Total Ranking Annual Report * Bronze “Berliner Type” Annual Report * 3rd Place alc (Austrian Leading Companies) Most Dynamic
KauFmann Martin Keim Lara Kocab Christian Kräutler Kerstin Künzle
Businesses (Category: “Goldener Mittelbau”) * 2003: 5th Place “Ranking Week” Full Service Agency * 2nd Place “Manager Magazin”,
Tino Le Duigou Christian Lercher Eric Lin Yang Liu Daniela Loacker Peter
Ranking s-dax Annual Report * 1st Place alc (Austrian Leading Companies) Most Dynamic Businesses (Category: “Goldener Mittelbau”)
Loacker Stephanie Locher Oliver Lorenz Alan Masetti Scott Mastin Irene
* 2004: 5th Place “Ranking Week” Full Service Agentur * 2nd Place “Manager Magazin”, Ranking s-dax Annual Report * Best Design
Mathis Monika Mathis Sabine Mattle Nina Mayer Richard Morscher Daniela
“Manager Magazin” Annual Report * Award “Printers Club Award”, Annual Report * 2005: 6th Place “Ranking Week” Full Service
Neumeister Amy Ou Beatrice Purin Christian Pockenauer Svetlana Polster
Agency * 1st Place “Manager Magazin”, Ranking s-dax Annual Report * 5th Place “Manager Magazin”, Total Ranking Annual Report
Nicole Prate Jürgen Raich Heidi Rehner Fabienne Rieger Petra Rumpl
* Award “Printers Club Award”, Annual Report * 2006: 4th Place “Ranking Week” Full Service Agency * 1st Place “Manager Magazin”,
Christian Saubert
Iris Scheibler
Natalie Scherer
Total Ranking Annual Report * 1st Place Total Ranking s-dax, Annual Report
Karin Schertler
* strong team. excellent results.
Michael Schlebes Claudia Schmid Daniela Schnetzer Bernd Schuler Sandra
* Silver Award “Berliner Type” Annual Report * Award “Deutsche Druck Industrie” Annual Report * Award “Deutscher Printers
Schuster Andreas Siegele Sonja Skerbinjek Brian Smith Carola Sturn Nian
Award“ Annual Report
*
Innovation Prize
“Deutsche Druck Industrie” Annual Report
*
2007: “International Printer of
Sun Volker Troy Denis Vellacher Christa Wehinger Bernhard Widmann
the Year “Sappi Award” Annual Report * 2008: Silver International Calendar Show 2008 * nominated for Design Award 2009 ...
Christoph Winder Walter Witschuinig Annie Xia Grace Zhang Tracy Zhang
klaus (a) · ruggell (fl) · chicago (usa) · shanghai (china)
Room 1101 · 555 Nanjing West Road · 200041 Shanghai · China
Contact person: Oliver Lorenz · [email protected] · Tel. +86 (0) 21 / 52 13 66 00 - 800
GCC Board
Beijing
The German Chamber of Commerce in China
Shanghai
South China
* All-China Board member
Siemens Ltd. Northeast Asia
CEO
Siemens Ltd. China
CEO and President
Dr. Richard Hausmann *
Chairman
Lufthansa German Airlines
Managing Director Greater China
Mr. Arved von zur Mühlen *
Chairman
Trolli Confectionery Co. Ltd.
Director Development Asia Pacific
Mr. Michael Stein *
Chairman
KPMG Huazhen Certified Public
Accountants
Partner Audit
Mr. Andreas Feege
Treasurer
Bosch (China) Investment Ltd.
Executive Vice President
Mr. Elmar E. Weitzel
Vice Chairman
German Chamber South China
Executive Director
Ms. Alexandra Voss *
Delegate & Chief Representative
Delegation of German Industry &
Commerce Guangzhou
German Chamber Beijing
Executive Director
Ms. Jutta Ludwig *
Delegate & Chief Representative
Delegation of German Industry
& Commerce Beijing
Vossloh Fastening Systems
(China) Co. Ltd.
CEO
Mr. Thomas Dorn
Treasurer
Lufthansa German Airlines
General Manager, Southern China
Mr. Nico Beilharz
Deutsche Bank (China) Co. Ltd.
Beijing Branch
Director, Head of Corporate Banking
Coverage, China
Mr. Eddy Henning
German Chamber Shanghai
Executive Director
Mr. Manfred Rothgänger *
Delegate & Chief Representative
Delegation of German Industry
& Commerce Shanghai
TCA Ltd. The Cable Assembler
Dongguan
CEO / President
Mr. Frank Jaeger
Gruner+Jahr (Beijing)
Advertising Co. Ltd.
General Manager & President
Mr. Wolfgang Kohl
Squire, Sanders & Dempsey
L.L.P.
Partner, Head of German Desk
Mr. Rainer Burkardt
VA TECH ELIN Transformer
Guangzhou Co. Ltd. (SIEMENSEnergy Sector)
General Manager
Mr. Dirk Soete
Volkswagen (China)
Investment Co. Ltd.
Executive Vice President,
Finance Department
Dr. Jörg Mull
Analogic Corporation
CEO
Dr. Rolf Hupke
C. Melchers GmbH & Co. KG
Guangzhou & Chongqing
Representative Offices
Inspirion GmbH Guangzhou
Representative Office
Chief Representative
Ms. Renate Tietjen
TUI China Travel Co. Ltd.
CEO
Mr. Marcel Schneider
POLYMAX (Shanghai) Trading
Co. Ltd.
Chairman of the Board
Mr. Ulrich Mäder
Bayer (China) Ltd.
Vice President, Corporate Social
Responsibility Greater China
Mr. William Valentino
DEKRA (Shanghai) Co., Ltd.
Managing Director
Mr. Günther Strobel
Daimler AG
Executive Vice President
Daimler Northeast Asia Ltd.
Chairman & CEO
Mr. Ulrich Walker
Management Engineers
China Ltd.
Managing Director
Ms. Brigitte Wolff
June - July 2009 | 2
The German Chamber of Commerce in China
www.china.ahk.de
3 | June - July 2009
Preface
The GC Ticker is the internal bi-monthly newsletter
of the German Chamber of Commerce in China.
Publisher
German Chamber of Commerce in China
Managing Editor
Mr. Bernhard Porpaczy (Shanghai)
Editorial Team
Mr. Martin Regnet (Beijing)
Mr. Kilian Becker (Guangzhou)
Main cover photo : © Imaginechina
Cover header photo: © Heinrichson Photos
GC Ticker is free of charge. For subscription or
extra copies please email your nearest Chamber
office
Other issues of the magazine can be found on
our website: www.china.ahk.de/publications
For editorial or sponsorship inquiries please
contact:
German Chamber of Commerce in China
Beijing Office
German Chamber of Commerce
in China • Beijing
0811 Landmark Tower 2, 8 Dongsanhuan (N) Rd.
Chaoyang, Beijing 100004
Tel: +86-10-6590 0926 ext. 308
Fax: +86-10-6590 6313
Email: [email protected]
Guangzhou Office
German Chamber of Commerce
in China • South China
2915 Metro Plaza, Tianhe (N) Rd.
Guangzhou 510620
Tel: +86-20-8755 2353
DL: +86-20-8755 8203
Fax: +86-20-8755 1889
Email: [email protected]
Shanghai Office
German Chamber of Commerce
in China • Shanghai
29F, POS Plaza, 1600 Century Ave.
Pudong, Shanghai 200122
Tel: +86-21-5081 2266 ext. 1872
Fax: +86-21-5081 2009
Email: [email protected]
© 2009. German Chamber of Commerce in China. No part
of this publication may be reproduced without the publisher’s prior permission. While every effort has been
made to ensure accuracy, the publisher is not responsible for any errors. Views expressed are not necessarily
those of GIC/GCC.
June - July 2009 | 4
The German Chamber of Commerce in China
China - Recovery in
Progress?
China is betting on infrastructure spending to pull itself through the current economic downturn: 45% of the USD 586bn
stimulus package is devoted to the development of highways, railways, airports
and power grids. Beijing is revisiting one
of its older tactics for boosting domestic
demand: building up the nation’s transport
network. Following the previous focus on
highways, this round is especially looking
at the country’s railway network. See our
cover story on the impressive number of
high-speed train lines currently being built
all over China.
The crucial difference to previous infrastructure spending sprees is that the government has enough money in its coffers to
fund these mega-projects. It is no longer
dependant on issuing long-term infrastructure bonds to finance the construction
of new highways. This has very interesting implications for the sector, especially
for the large state-owned infrastructure
and civil engineering companies. While
this group can especially look forward to
winning major contracts over the coming
two years, there will also be excellent
chances for international players.
At the German Chamber, we noticed the
crisis especially in our members’ growing
interest in cost-reduction possibilities,
labour law issues and short-time work
arrangements. April brought first signs
of a positive change, as China seemed
to manage the crisis well and confidence
levels of German companies were back on
the rise.
and that domestic consumption will pick
up. This was strongly felt throughout the
Greater China Day in Hannover back in
March. The annual forum drew a record
number of attendees and top-flight speakers including former Chancellor Gerhard
Schröder. Whether China will reach its
ambitious 8% growth target in 2009 was
the question of the day. Dr. Jörg Mull of
Volkswagen China, one of the many senior
corporate speakers at the event, concluded
that the Greater China Day set a positive
signal in times of considerable economic
uncertainties. “German companies in China
made it clear that they trust in a positive
development of the Chinese markets.”
Meanwhile, membership numbers at the
German Chamber are still rising, indicating
that China plays a vital role in the strategic
development of most German corporates.
To provide a more detailed census of the
current economic situation and business
outlook, the German Chamber will conduct
a Confidence Report of German Industry in
China. Your support of this study is very
much appreciated.
Let’s hope that the current, global outbreak of swine flu will be handled in an
adequate manner, so that neither the flu
nor the required counter measures will be
threatening the economic recovery process
in China.
Enjoy reading this issue of the GC Ticker.
Wishing you a healthy summer!
More companies in Germany are now
looking towards China again, spurred by
the common belief that the country will
emerge from the crisis stronger than before
Arved von zur Mühlen
Chairman | GCC • Shanghai
The German Chamber of Commerce in China
Chamber Notices
BEIJING
ALL CHINA
Membership Directory 2009/10 Update
The “Who is Who” of the Chamber will be updated in May and June to reflect
all our new and existing member companies for the upcoming 2009/10
edition of the GCC Membership Directory. All members will be contacted by
their local Chamber team to update their information and reserve their ad
spaces. If you haven’t been contacted yet, please get in touch with your
respective project manager:
Beijing: Ms. Kathrin Tobusch | [email protected]
Shanghai: Ms. Yandi Li | [email protected]
South China: Ms. Esther Hu | [email protected]
SOUTH CHINA
Shenzhen Office Opening Leads to
New Name: German Chamber of
Commerce • South China
Paying tribute to its new presence in Shenzhen and the growing number of
activities outside Guangzhou, the board of the German Chamber of Commerce
in China decided to rename its office in the Pearl River Delta into German
Chamber of Commerce • South China. This underlines the aim of the local
chamber team to not only service German businesses in the capital of Guangdong, but also in other equally important business hubs in South China such
as Shenzhen and Zhuhai.
On occasion of the Shenzhen office opening ceremony, Ms. Alexandra Voss,
Executive Director of the GCC • South China, proudly announced the name
change with immediate effect. The event at the Kempinski Hotel attracted
more than 100 guests, who warmly welcomed the chamber team in its new
location. Speeches of Consul General Mr. Eberhard Schuppius, Ms. Voss and
Ms. Sabine Florian (GCC • Hong Kong) mirrored the importance of the Chamber’s presence in Shenzhen and encouraged member companies to further
strengthen ties with the Chamber. With Regional Manager Mr. Max Zenglein
based at the new office in the Chinese Overseas Scholars Venture Building,
local representatives of German companies are now able to address a contact
person on the ground. Furthermore the German Consulate will have a presence
at the office once a month. The opening ceremony showed once more that the
Shenzhen community knows how to party. To get a better impression, please
visit the Around Town section later in this GC Ticker.
GC Ticker Invited to Advise Asian Games
Magazine
The editorial team of GC Ticker recently received
an unexpected honour by the Guangzhou Asian
Games Organizational Committee (GAGOC). Mr.
Kilian Becker, Executive Chamber Manager and
local Editor of GC Ticker in Guangzhou, had been
invited to give comments and advice on the
content and layout of the official bilingual Asian
Games Magazine. Together with representatives of local authorities, universities and foreign consulates, our editor provided his input from a foreigner’s
perspective and spent an insightful afternoon with GAGOC’s representatives
and editorial team.
www.china.ahk.de
New Communications Department
in GCC • Bejing
Mr. Martin Regnet has joined the German
Chamber in Beijing as Head of its Communications Department. Before moving to Beijing,
Mr. Regnet was in charge of the Asia-wide
Communications for a large German automotive systems supplier. His previous Chinabased business experience includes the
position of Chief Editor for “The Bridge,” a
magazine which he published for a foreign national Chamber of
Commerce in China. Mr. Regnet will be in charge of coordinating
communication activities and cooperation with media in Germany
and China. Contact:
Tel: 010 6590-0926 ext. 318
Email: [email protected]
Get Ready for the German Ball
Beijing 2009!
After the Ball is before the ball: Preparations for the 9th German
Ball on 14th November 2009 (TBC) at the Kempinski Hotel Beijing
have begun. Get involved now and support the event as a
sponsor and partner. For more information please contact:
Ms. Katja Sassi-Bucsit at [email protected]
SHANGHAI
New PR Manager for
GCC • Shanghai
Ines Ahrens has recently been appointed to
lead the PR efforts of the German Chamber of
Commerce • Shanghai. She brings with her a
profound background in corporate communications and journalism, having worked most
recently as a senior consultant for Edelman,
one of the largest international PR agencies.
Ms. Ahrens will be responsible for creating more awareness for
the German Chamber in the Greater Shanghai area as well as in
Germany and within the AHK network. For any media inquiries
please contact Ms. Ahrens at:
Tel: 021 5081-2266 ext. 1637
Email: [email protected]
German Ball 2009 - Save the Date!
The 12th German Ball will be held on 28th November 2009 at the
Grand Hyatt Shanghai. Stay tuned to find out about this year’s
theme. November may still seem a long way off, but sponsorship
packages are already in high demand. For further information
please get in touch directly with Mr. Sebastian Zettelmeier at:
Tel: 021 5081-2266 ext. 1605
Email: [email protected]
5 | June - July 2009
Chamber Teams
Your company on
the desks of
our members China-wide
The German Chamber of Commerce in China
Beijing
Ms. Katja Sassi-Bucsit
Executive Chamber Manager
Tel: 010 6590-6930
Fax: 010 6590-6313
Email: [email protected]
Ms. Miao Wang
Chamber Affairs Manager
Tel: 010 6590-0926 ext. 207
Fax: 010 6590-6313
Email: [email protected]
Ms. Claudia Barkowsky
Regional Manager North China and Executive
Chamber Manager GCC • Tianjin
Tel: 010 6590-0926 ext. 329
Fax: 010 6590-6313
Email: [email protected]
Mr. Lipeng Wang
Vice Executive Chamber Manager GCC • Tianjin
Tel: 010 22 2301 1709
Email: [email protected]
Shanghai
Advertise in the most
frequently used directory of
German companies in China.
Ms. Anna-Lisa Hartmann
Executive Chamber Manager
Tel: 021 5081-2266 ext. 1630
Fax: 021 5081-2009 ext. 5630
Email: [email protected]
Mr. Bernhard Porpaczy
Product Manager GC Ticker
Tel: 021 5081-2266 ext. 1872
Fax: 021 5081-2009 ext. 5872
Email: [email protected]
Ms. Heidrun Buss
Project & Event Manager Shanghai
Tel: 021 5081-2266 ext. 1656
Fax: 021 5081-2009 ext. 5656
Email: [email protected]
Mr. Ferdinand Pillenstein
Regional Manager Zhejiang & Jiangsu Provinces
Tel: 021 5081-2266 ext. 1830
Fax: 021 5081-2009 ext. 5830
Email: [email protected]
Ms. Li Yandi
Project Manager
Tel: 021 5081-2266 ext. 1609
Fax: 021 5081-2009 ext. 5609
Email: [email protected]
Ms. Liu Li
Chamber Team Assistant
Tel: 021 5081-2266 ext. 1650
Fax: 021 5081-2009 ext. 5650
Email: [email protected]
Limited placements still
available, contact your local
Chamber for details.
Beijing
Ms. Kathrin Tobusch
010 6590-0926
[email protected]
Guangzhou
Ms. Esther Hu
020 8755-8217
[email protected]
Shanghai
Ms. Li Yandi
021 5081-2266 ext. 1609
[email protected]
South China
Mr. Kilian Becker
Executive Chamber Manager
Tel: 020 8755-8203
Fax: 020 8755-1889
Email: [email protected]
Ms. Esther Hu
Chamber Assistant
Tel: 020 8755-2353 ext. 217
Fax: 020 8755-1889
Email: [email protected]
June - July 2009 | 6
Mr. Max J. Zenglein
Regional Manager
Tel: 0755 8635-0487
Email: [email protected]
Contents
The German Chamber of Commerce in China
Business Focus
Members Mix
8 News from Berlin and Brussels
Meet the Member
10 Engineering for Speed
China is working fast on the
world’s largest network of high-speed
railway lines
14
14 It Began in the North
‘Jing-Jin’ laid the ground for China
going high-speed: with ballastless
track and turnout technology from
Germany
16 Regional Spotlight:
Harbin – not just holidays on ice
Hainan – tourism remains the island’s
economic focus
Chengdu – becoming a hub for the IT
industry
Yingtan – the water industry looks at
Jiangxi Province
20
Expo in Brief
22
65
66
68
Two GCC-supported initiatives
help children and their families in
Guangzhou and Sichuan
69
32 Shanghai
New Books
70
Food & Restaurants
72
Learning to cook Chinese can be
that easy
Art & Culture
73
Parallel units in South China’s
contemporary art scene
Talk about Aspirin, automotives and
China in 2050 made up a busy event
calendar in Shanghai this spring
Travel
74
74
Best from the horseback view:
Inner Mongolia’s remote treasures
City Tour
76
From Dongcheng with love
Around Town
42 Beijing
www.china.ahk.de
Education & Training
Giving Back
45
An enlarged GIC office in Guangzhou
and the Chamber’s new local presence
in Shenzhen complemented the name
change of the GCC • South China
46 Shanghai
Health
Friendships in transit
Bridging the gap to Chinese high
potentials
30 South China
44 South China
64
Schröder visited the Shanghai
Expo office
The Greater China Day in Hannover
sent a positive signal of German investor confidence in China
Benefit Program 2009
– Yellow Pages
Member News: 50
Community
22 All-China
GCC • Beijing reviewed an eventful
year at the annual general meeting
and kicked off its first networking
evening for young professionals
48
53
54
54
Beijing
South China
Shanghai
Chamber News
24 Beijing
Willi Vett – Beiten Burkhardt
Thomas Ahlers - FIT
Juergen Baur – Rödl & Partner
Dirk Meissner - MCon
76
Competitions
78
Church Calendar
79
Chamber Events Calendar
80
7 | June - July 2009
Business Focus
Sino - German Business
The German Chamber of Commerce in China
News from Berlin and Brussels
Tremendous Interest in Angola
Berlin. More than 300 entrepreneurs followed
the invitation of the DIHK to the 2nd GermanAngolan Economic Forum in Berlin at the end
of February. Angolan President Dos Santos
was accompanied by five of his ministers
and 40 business delegates. The highlight of
the Forum was the signing of a bilateral economic partnership treaty and several agreements at company level. In the presence of
the new German Minister of Economic Affairs,
Karl-Theodor zu Guttenberg, DIHK Managing
Director Martin Wansleben announced that
his organisation together with the Ministry of
Economic Affairs would still establish a representative office of the German Economy in
Luanda this year. An ever-increasing number
of German companies show interest in this
region, particularly from the areas of energy,
mining and transportation infrastructure.
Contact: [email protected]
Now Legal: Accounting Abroad
Berlin. With the passing of the Annual Tax
Act 2009, companies are now permitted to
conduct their bookkeeping abroad. Hence the
DIHK was able to implement one of its longstanding claims. The new system will help
businesses save operating costs and reduce
bureaucracy. Prior to the new rule, companies
were only able to relocate their electronic
accounting to a foreign country in special
cases, since the General Tax Code required
domestic accounting. This represented a hindrance both for foreign subsidiaries, which
had their accounting centralised in the
country of the holding company, as well as
for midsized companies, seeking to capitalise
on cost benefits.
IHKs Promote Mobility of
Apprentices
Brussels. For their Mobility Consultant Initiative the IHKs (Chambers of Industry and
Commerce) received praise from Brussels. The
programme that is subsidised by the European Social Fund will be promoted as a best
practice model across the EU. And this is
how: Since February, experts from 13 chambers advise businesses nationwide on how
their apprentices and young professionals
can gain experience abroad. The consultants
June - July 2009 | 8
help in organising foreign work-stays and initiating exchange programs. The underlying
rationale of the programme is that an export
nation like Germany increasingly requires professionals with international experience and
proficiency in foreign languages. The best
way to achieve this is through an internship
abroad. At present, only about 2% of apprentices have gained international work experience. The IHK and the European Union aim
to considerably increase this share by 2015.
Contact: [email protected]
Stock Exchange Tax is Looming
Berlin. What was already believed to be a
long-closed agenda point may soon reheat
discussions. Taxation of stock-exchange
transactions may become a reality again
according to the plans of German Minister of
Finance, Peer Steinbrück. The DIHK opposes
the re-establishment of this tax, as it would
raise the cost of trading with shares and thus
counteract the stated objective to engage a
broader level of the population in a company’s wealth. Furthermore, the tax would likely
expel certain areas of the financial sector
from Germany, making capital procurement
for companies and the country’s economic
recovery even more difficult. From a legal
perspective, the stock exchange tax would
also undermine EU law, which provides for a
tax exemption on turnovers in the securities
business.
for a short time only,” the DIHK warned. The
Bundestag passed the law on March 20th.
Contact: [email protected]
Universities Finally Open Doors
for Masters
Berlin. And she does move: The conference
of the ministers of education and cultural
affairs adopted a uniform regulation of the
university admission for qualified vocational
applicants. According to this regulation,
master craftsmen (German Meister) and business administrators (Fachwirte) shall receive
the general university admission qualification. Graduates of the ‘dual system’ with at
least three years of work experience can also
obtain a subject-specific university admission qualification after passing an aptitude
test. Hence, the conference followed the long
lasting urges of the DIHK to regulate university admission in a consistent way. Due to
the previous regionally unequal regulations
hardly any trainees started to study after
their apprenticeship.
Contact: [email protected]
European Election 2009
Contact: [email protected]
Breach of a Taboo as Last
Escape
Berlin. Do expropriations fit into a social
market economy or should regulated insolvencies be preferred? Although this question
was considered impossible until recently, it
was raised at a historical consultation concerning the rescue takeover law (Rettungsübernahmegesetz) at the German Bundestag
in March 2009. Based on the example of the
beleaguered property investor Hypo Real
Estate, representatives of federal institutions, labour unions and banks discussed the
controversial new law. “The expropriation is
indeed a breach of a taboo, but probably the
only alternative in an otherwise unsolvable
situation. Therefore, this tool should be used
Brussels. “The European election is very
important – please give your vote”, appeals
DIHK President Hans Heinrich Driftmann to
entrepreneurs in Germany. 375 million citizens from 27 member states will elect their
European Parliament on the 7th of June 2009.
In the next five years 99 German delegates
will co-decide about environmental, social,
industrial and business politics. “The majority
of economical relevant laws are coming from
Brussels already for a long time. Therefore
you should have a close look and decide with
your vote, which German delegates shall represent your interests for the next five years.”
Contact: [email protected]
The German Chamber of Commerce in China
Sino - German Business
Business Focus
www.china.ahk.de
9 | June - July 2009
Business Focus
Cover Story
The German Chamber of Commerce in China
Engineering for Speed
China is Working Fast on the World’s Largest Network of High-Speed
Railway Lines
To meet the steadily rising demand for mobility of the Chinese population, excessive construction works are being carried out
to upgrade the infrastructure. Besides ongoing extension of the Chinese road and air traffic system, the railway track network is
growing continuously. Since 2005, several high-speed railway tracks have been under construction to connect the major cities.
Altogether, the authorities aim to construct 12,000km of high-speed railway track by the year 2020. Main lines are the BeijingHong Kong connection via Wuhan and Guangzhou, the Beijing-Shanghai line and the east-west-connections from Xuzhou to
Lanzhou and from Shanghai via Wuhan to Chengdu (see the individual boxes to get an overview of the major planned lines).
Chinese workers welcome a CRH3 EMU at a railway station in Tianjin, April 23rd, 2008
© Imaginechina
Beijing-Tianjin:
First Success and Next Steps
With the opening of the Beijing-Tianjin
Intercity Railway on occasion of the
Olympic Games in August 2008, the
first Chinese high-speed railway line
with design speed of 350km/h started
operation. Travelling time for the 115km
stretch between the two cities has
shortened from 70 to 30 minutes with
trains running at 15-minute intervals
during peak time.
Next projects are the Wuhan-Guangzhou
PDL (Passenger Dedicated Line) and the
Zhengzhou-Xi’an PDL by end of 2009 as
part of the five-year plan with several
lines to follow with a total investment
of RMB 3.5tn for railway construction
only.
Apart from the construction of tracks,
the building and upgrading of railway
stations across the country represents
June - July 2009 | 10
Beijing-Harbin Line
Beijing-Shanghai Line
Route: Tianjin, Qinhuangdao, Shenyang.
Branch: Shenyang-Dalian
Total length: 1,700km
Maximum speed: 350km/h
Estimated completion: 2013
Route: Tianjin, Jinan, Xuzhou, Bengbu, Nanjing
Total length: 1,300km
Maximum speed: 350km/h
Estimated completion: 2012
Harbin
Beijing
Tianjin
Jinan
Shenyang
Xuzhou
Qinhuangdao
Bengbu
Beijing
Dalian
Tianjin
Nanjing
Shanghai
Cover Story
The German Chamber of Commerce in China
China High-speed Railway Glossary
There are two speed categories of PDL in China:
• 200-250km/h: these trains can include both passengers and
freight and are used for important corridors, where no railways
exist yet. In the long-run, once dedicated freight lines are built,
PDLs of this type will be able to upgrade to the maximum speed
of 300km/h.
• 350 km/h: this category is yet the fastest high-speed railway
in the world and is currently also used in France (TGV Est). No
freight service can run at this level.
Intercity Line: maximum speed of 200-350km/h, connecting
large urban centres
Updated conventional railways: Some of the main lines of conventional tracks are already updated to the maximum speed of
200km/h.
Source: Wikipedia and author
huge investment volumes and business opportunities. The development of Guangzhou New Railway Station alone makes up an estimated
investment of RMB 18bn. When completed, the station will boast more
than 30 tracks and service over 200,000 passengers a day, making
it one of the biggest worldwide. Further stations are being built in
Beijing (South Railway Station), Changsha, Chengdu, Fuzhou, Hangzhou East, Shanghai Hongqiao, Suzhou, Tianjin, Wuhan, Xi’an and
Zhengzhou.
With 1,290km of high-speed railway lines (Munich-Nuremberg, CologneFrankfurt and Berlin-Hannover) in operation, Germany – along with
Japan and France – still belongs to the leading field of fast-train
nations today. German companies have developed milestone technologies for tracks, track equipment and train technique. German companies
have provided ballastless tracks to China, where concrete layers substitute the originally ballasted track. German company RAIL.ONE developed the track system method adopting special concrete sleepers. Max
Bögl invented the prefabricated slab system, while Siemens contributed
the know how for the catenary system for the Bejing-Tianjin line.
German engineering bureaus, such as PEC+S, provide consultation services for the high-speed railway projects in China. In order to fulfill
the demands, project teams are being established at the relevant sections, consisting of foreign experts, translators and employees for
administrative tasks. The project teams closely cooperate with the
Chinese joint venture partners and the client, usually represented by
the Chinese Ministry of Railway (MOR). The team monitors the construction work, solves problems and implements extensive quality and
safety measures, in order to avoid accidents and damages to the building structure nearby.
Project Spotlight:
Nanjing Dashengguan Yangtze Bridge
As part of the Chinese high-speed railway development some of the
biggest railway bridges worldwide are presently being built. The
Nanjing Dashengguan Yangtze River Bridge within the Beijing–Shanghai PDL is just one of them.
Nanjing ‘Big Bridge’ is designed as a 1,615m steel framework arch with
main openings of 2x360m. Arranged in one level, the bridge overpasses four tracks of the high-speed railway line (300 and 200 km/h)
Beijing
Shijiazhuang
Zhengzhou
Wuhan
Changsha
Guangzhou
Shenzhen
www.china.ahk.de
Beijing
-Hong Kong
Line
Route: Shijiazhuang,
Zhengzhou, Wuhan,
Changsha, Guangzhou,
Shenzhen
Total length: 2,300km
Maximum speed:
350km/h
Estimated completion: Construction of
Beijing-Wuhan section
has already started,
Wuhan-Guangzhou to
go into operation by
January 2010
Shanghai-Shenzhen Line
Qingdao-Taiyuan Line
Route: Hangzhou, Ningbo, Wenzhou, Fuzhou, Xiamen
Total length: 1,600km
Maximum speed: Shanghai-Hangzhou-Ningbo part
is designed for MOR of 350km/h, rest is designed for
MOR of 200-250km/
h for both passengers and freight
Estimated completion: Ningbo Wenzhou - Fuzhou
- Xiamen by end of
2009, Shanghai Hangzhou in 2012
Route: Jinan, Shijiazhuang
Total length: 770km
Maximum speed: 200-250km/h
Estimated completion: by end of 2009
Taiyuan
Shijiazhuang
Jinan
Qingdao
Hong Kong
11 | June - July 2009
Business Focus
Passenger Dedicated Line (PDL), synonymous with High-Speed
Rail. A PDL is a railway route, which permits speeds of more than
200km/h. However, the name is misleading in that some lines are
not passenger only. The planned tracks will make China’s highspeed rail network the biggest one in the world.
German Technology and Know-How
Cover Story
The German Chamber of Commerce in China
Business Focus
Nanjing Dashengguan Yangtze Bridge
and two tracks of Nanjing Metro. One key challenge during construction was the drilling of bored piles with lengths of up to 112m.
Special boring equipment was needed, which operated from drilling
platforms that first had to be installed in the Yangtze River. 80,000t
of steel were used for the truss girder - about eight times the amount
that was needed for the construction of the Paris Eiffel Tower.
Project Spotlight: Wuhan-Guangzhou
To implement the special technologies for high speed railway a good
number of foreign companies, mainly from Germany are working on
the Wuhan–Guangzhou PDL project. The scope of service ranges from
production and delivering of track components (special sleepers, turnouts), technology transfer for construction of ballastless track to consultation and supervision for the construction works on site.
The Wuhan–Guangzhou PDL crosses the provinces of Hubei, Hunan and
Guangdong at a length of 960km. The line is based on 323km of subgrade sections with embankments and cuttings, 472km of bridges, and
165km of tunnels. Due to the difficult geological situation the track
is – as usual in China – mainly built on viaducts with long passages of
piers and prefabricated girders. Crossing many mountains a number of
Xuzhou-Lanzhou Line
Shanghai-Chengdu Line
Hangzhou-Kunming Line
Route: Zhengzhou, Xi’an, Baoji
Total length: 1,400km
Maximum speed: 350km/h
Estimated completion/Status: Zhengzhou-Xian by end of 2009
Route: Nanjing, Hefei, Wuhan, Chongqing
Total length: 1,900km
Maximum speed: Shanghai-Nanjing is part of Beijing-Shanghai line with 350km/h tracks; NanjingChengdu is designed for 200-250km/h for passengers
and freight; Chongqing-Chengdu section is designed
for 350km/h
Estimated completion: Shanghai-Nanjing section in
2010, Nanjing-Hefei-Wuhan opened in 2008
Route: Nanchang, Changsha, Guiyang
Total length: 1,630km
Maximum speed: 350km/h
Estimated completion: 2012
Hangzhou
Lanzhou
Xi’an
Baoji
Xuzhou
Nanjing
Hefei
Zhengzhou
Chengdu
Chongqing
June - July 2009 | 12
Wuhan
Shanghai
Changsha
Guyang
Kunming
Nanchang
Cover Story
The German Chamber of Commerce in China
While other railway lines use German tunnel boring machines such as
the types of Wirth (e.g. for the Guangzhou-Shenzhen line) and Herrenknecht (e.g. Guangzhou metro), these tunnel sections are constructed conventionally, mainly using mining techniques like drill and
blast or excavation. Within the section Huadu-Guangzhou Station
the construction of the 4.3km JinshaZhou tunnel is considered to be
extremely difficult. The cooperation of all experts and parties involved
avoided serious accidents.
Technology Transfer
One of the major interests of the Chinese Ministry of Railway as the
major client is reasonable technology transfer. Chinese constructors and design institutes should be enabled to design and construct
the high-speed railway lines independently. Whereas the construc-
www.china.ahk.de
tion of pilot projects such as the Beijing-Tianjin Intercity Railway line
involved several foreign companies, future sections will be developed
and constructed with Chinese know-how only.
Nevertheless, railway construction in China today still represents the
biggest market worldwide. There are plenty of projects waiting, where
foreign involvement will be still necessary, such as for the maintenance of ballastless tracks and noise and vibration protection. Even if
local suppliers have gained plenty of experience, many fields of technology have not yet reached international top standards and call for
improvement. Therefore the development of high-speed railways in
China will continue to remain a profitable field for foreign constructors and consulting engineering companies in the future.
Mr. Johannes Frühauf is Bridge Supervision Engineer at PEC+S
Germany (Planning Engineering Consulting + Services Ltd). The
German joint venture supervised the project Beijing-Tianjin (lot
2) and currently works for the section Huadu-Guangzhou Station
within the Wuhan-Guangzhou PDL. Another project covers the
Nanjing-Dashengguan Yangtze Bridge on the Beijing-Shanghai
PDL.
PEC+S consists of: SSF INGENIEURE Ltd. (Civil Engineering); GRE
- Gauff Rail Engineering Ltd. (Track Equipment, Track Work);
ACCON Ltd. (Sound and Vibration Technology) and IMB Dynamic
Consulting (Dynamic Consulting)
China contact: Mr. Johannes Frühauf | Tel: 010 6538-9360
Germany contact: Mr. Matthias Scholz | Tel: +49 89 3604-0455
13 | June - July 2009
Business Focus
tunnels is necessary. Several precast yards exist
along the site for
prefabrication of
the 820 tons of
pre-stressed concrete girders. Large
gantry cranes lift
the girders on the
piers and special
vehicles transport
them to their final
destination.
Business Focus
The German Chamber of Commerce in China
It Began in the North
The Beijing-Tianjin Route Laid the Ground for China Going High-Speed
Counting some of the leading providers of
high speed train technology, German companies played a major role in the construction
of the first Chinese PDL Line between Beijing
and Tianjin PDL. The route starts at Beijing
South Station, bridges four urban motorways
and leads over delicate alluvial soil to the
port city of Tianjin. New track technologies
and innovations used on the 115km long path
guarantee reduced wastage and highest passenger comfort and safety while travelling at
350km/h top speed.
CTC and CNTT staff members installing and
adjusting a turnout drive
Ballastless Technology from
Germany
©Josef Hess
Tests on traditional tracks brought out the need for
new technologies. When a train reaches about 250km/h it encounters
a ballast pickup, causing the axle and the bogie-mounted brake cylinders underneath the train to be hit by the ballast stones. China has
developed special super-class ballast especially for high-speed Passenger Dedicated Lines (PDL). But the resources for these super ballast
stones are scarce. By applying the so-called ballastless track technology ("slab track") such problems can no further occur.
of technical consultation, the check of substructures and quality assurance of the slab track mounting. The company also supported the construction and equipment of production facilities in the Beijing suburbs
Fangshan and Pinggu. These two facilities altogether produced about
36,000 track-supporting layers for the double-track line from Beijing to
Tianjin. With an accuracy of up to 10mm (outer geometry) in the raw
parts and ±2mm (inner geometry) in the adjusted parts the required
geometry had been grounded in the whole line.
The construction of a 10km long test intersection of the PDL route Due to the alluvial soil on the route a total of 100km of tracks had
began in 2005. China Railway 17 Bureau Group & Co. Ltd. executed the to be built on bridge constructions, of which the longest continuous
planning and construction work with the support of German Max Bögl stretch runs over 36km. Such constructions require special ‘arming’,
Group. The German developer of the ballastless track technology with for which portal frames boosted the 860t heavy bridge girders on
precast concrete plates provided an 80-strong team that was in charge abutments. Heavy lorries imported from Germany transported the parts
along the tracks to their destination, where special feeder
Construction near Yizhuang, the first of three stops on the way from
devices carried out the final positioning.
Beijing to Tianjin
Turnout Technology
Not only had German Bögl slab track technology found its
way into the Chinese mammoth project. Voestalpine BWG,
German daughter of Austrian Voestalpine Group, won the
contracts to deliver the turnout technology for China’s first
three high-speed lines. The company provides 319 special
turnouts for three different Chinese railway companies.
‘Jing-Jin Line’, the connection between Beijing and
Tianjin, is also the first Chinese railway line, where special
high-speed turnouts were used. 28 German fabricated turnouts serve on this route alone. In 2007, Voestalpine BWG
and state-owned China Railway Shanhaiguan Bridge Group
Co. Ltd. (CRSBG) founded the 50:50 joint venture Chinese
New Turnout Technology Co. Ltd. (CNTT). The newly formed
company has since become the leading company in the
high-speed turnout technology area throughout China.
June - July 2009 | 14
The German Chamber of Commerce in China
A high-speed turnout of the line, an achievement of
Sino-German cooperation
Business Focus
The total investment in this JV amounts up to EUR 21.5mn. 90 staff
members of CNTT were responsible for the final assembly of the components and the running of on-site-logistics.
demand for mutual understanding of the other side’s concerns is omnipresent”. Mr. Hess pointed out that he is overly impressed by the
excellent communication between the client and the Chinese partners.
The installation, adjustment and acceptance on site was supported
by CTC, a turnout technical service consortium consisting of VaBWG
turnout experts and survey engineers. “The Sino-German cooperation
in these gigantic projects is very good”, said Mr. Josef Hess, project
manager of CTC who is now also in charge of the ‘Wuguang Line’ from
Wuhan to Guangzhou. He added, “we all work together. Hence the
In the context of technology transfer into the JV and setup of local
turnout fabrication, components for future sections of the high speed
PDL network are already being produced locally. For the time being
however, German companies can still contribute with their knowledge
and experience and help to accelerate the process of China becoming
a high-speed railway nation. MK
www.china.ahk.de
15 | June - July 2009
Harbin - North China
The German Chamber of Commerce in China
Business Focus
Not Just Holidays on Ice
Harbin is not only Vast and Cold, it Provides a Large Set of Opportunities for Investors
With a total area of 53,100km², the
capital of Heilongjiang province covers
almost three times more land than
Beijing. Populated by 9.4mn residents,
Harbin is probably China’s northernmost business and visitor hotspot.
The Harbin weather is characterised by
mild summers and cold winters. The
average annual temperature in the city is only 4.3°C (Beijing 13°C).
The coldest time lasts from December to February, when the average
temperature drops to –23.6°C, while it reaches just a mild 20.8°C in
summer. Hence, it is no wonder that Harbin reached worldwide fame
for its beautiful display of ice sculptures in winter. The Harbin International Ice and Snow Sculpture Festival, first held in 1985, runs every
year from 5th January for over one month. In 2009, nearly 800,000
visitors from around the globe flocked to the festival to become captivated by the frozen magic.
© Narelle Beattie
A Young Town
Until the end of the 19th century Harbin was just a small fishing
village on the Songhua River. As of 1896 the city experienced a strong
European influence due to its geographic proximity to Russia. Traces
of this era are still visible today in the city’s distinct architecture that
makes Harbin a unique place in China. The majestic St. Sofia Orthodox Church and the Zhongyang Dajie shopping street with its European
style buildings give visitors the impression of walking through an
'Eastern Moscow'.
Heilongjiang Province
“Heilongjiang” literally means Black Dragon River, which is the Chinese
name for the Amur River. The Amur forms the border line to Russia
in the North, while in the East, China and Russia are divided by the
Wusuli River. In total, Heilongjiang shares a border of 3,040km with
Russia. The province is an important centre of traditional industry
and agricultural production especially for rice, soybean and corn. With
11.34mn hectares of cultivated land it accounts for 10% of China's
total agricultural output. Heilongjiang is also rich in natural resources
with its deposits of petroleum, graphite, coal and gold.
Solid Infrastructure
Taiping International Airport lies 33km northwest of Harbin city. It
was built in 1979 and began serving as an international airport in
1984. After another expansion during 1994-97, it now has more than
ten daily flights to Beijing and Shanghai each and a few scheduled
flights to Russia, South Korea, Japan, Singapore and Malaysia.
Although Harbin is not a coastal city it does own a port on the banks
of the Songhua River that is listed as one of the eight important
inland harbours in China. In fact, there are two ports in Harbin: One
is located in Daobei District and handles passenger traffic, the other
one is the freight port in Taiping District with particularly high cargo
volumes in wood products.
June - July 2009 | 16
Harbin is the second largest railway hub in Northeast China after
Shenyang in Liaoning Province. The city has two railway stations:
Harbin Railway Station and Harbin Eastern Railway Station, which
was originally built by the Russians in 1899 as an extension of the
Trans-Siberian Railway. Harbin is also well integrated into China’s road
network with seven highways leading to all parts of the country.
Industrial Landscape
Besides agriculture, Harbin houses a wide range of manufacturing
industries, primarily pharmaceuticals, automotive, electromechanical
plant equipment and textiles. Other industries include light industry,
metallurgy, electronics, construction materials and chemical engineering.
Leading companies include Harbin Aircraft Manufacturing, Harbin
Power Plant Equipment, Harbin Bearing Group, Harbin Measuring
& Cutting Tool Group, Harbin Dongan Auto Engine, Harbin Pharmaceutical Group and Harbin Beer. The latter has become a giant in
China’s beer industry with an annual production of 1.9mn kilolitre. It
was founded in 1900 by Russians and is today China’s fourth largest
brewery. On the academic side, Harbin is home to one of the top ten
universities in China, the Harbin Institute of Technology. CB
Harbin Development Zone (HDZ) consists of
two zones:
1) Harbin Economic and Technological Development Zone (ETDZ) was
established in June 1991 and approved as a state-level development zone
in April 1993. The zone has a planned area of 30km² and three centralised
parks under its administration: The Nangang Park mainly serves as an
incubator for new and high-tech projects and R&D base for enterprises.
The Hapinglu Park is a comprehensive industrial zone for investment projects of automobile and car parts, pharmaceuticals, food processing, electronics and textiles. Yingbinlu Park is mainly dedicated to high-tech incubation projects and industrial development.
2) Harbin High and New Technological Development Zone was established
in September 1988 and got approval by the state council in March 1991.
Key economic data
Harbin (2007)
Total GDP RMB 243.7bn
Per capita GDP RMB 24,680
Heilongjiang (2007)
Total GDP
RMB 706.5bn
Primary industry
RMB 91.5bn
Secondary industry
RMB 369.6bn
Tertiary industry
RMB 245.4bn
Per capita GDP
RMB 18,478
Change (to 2006)
+12%
+4.1%
+12%
+14.8%
+11.9%
Source: Hong Kong Trade Development Council
Useful Links:
Harbin ETDZ: http://www.kaifaqu.com.cn
Northeast China City Info: http://ch-info.erina.or.jp/English/He/Har/
harbin.htm
Hainan - South China
The German Chamber of Commerce in China
Business Focus
Sunny Prospects in the South Sea
Hainan Sees its Future in Tourism
whereas a ticket to Bali or
Phuket is at least double
that price. Newly introduced
direct flights from Taiwan to
Hainan are likely to attract
even more tourists.
View over Sanya
© Kempinski Hotel Sanya
The international economic downturn is barely noticeable in China’s
holiday paradise Hainan. Visitor numbers and tourism revenues over
Chinese New Year 2009 witnessed a double-digit growth percentage to
the year before.
Contrary to its initial plans, Hainan puts further focus on its tourism
sector. The set up of a petrochemical industry, which had been
announced several years ago, has not happened so far and now
emerges in neighbouring Guangxi. While Hainan’s government plans
to enlarge the infrastructure, private investors continue to build new
hotels, bearing great business opportunities for foreign suppliers.
Holiday guests will be delighted, considering the fact that Hainan
belongs to the few offshore regions in China without main focus on
industrial development.
Production in the North, Relaxation in the South
According to the National Bureau of Statistics, Hainan is China’s
leading province in terms of its primary sector. In 2007, the island’s
primary sector contributed 30% to the total gross value added, while
manufacturing accounted for only 23% of its GDP.
The industrial sector located around the provincial capital Haikou in
the north of the island focuses on processing natural resources. It is
also here, where German textile giant Triumph with its 2,000 employees produces linen for the Pan-Asian Market.
On the opposite side of the island, tourism meanwhile is spreading
out. Since 2004, foreign enterprises have started to build five star
hotels that contribute to the rising demands in quality and service
standards. In 2008, openings of Kempinski, Mandarin Oriental and
Banyan Tree have set the scene for tough competition in the top
luxury hotel segment. The Provincial Bureau of Statistics counted
around 20mn visitors in 2008, an increase of 11% compared to the
year before. The number of international tourists decreased by 6%
though and fell to around one million.
In spite of the crisis, many hotels and restaurants on the island
expect satisfying business in 2009. During the spring festival 2009
the number of tourists has risen by 15% compared to the same period
last year. Revenue of the travel industry has grown by 19% during the
same time. Industry insiders report that the Chinese save up expensive visits abroad and travel to domestic destinations instead. Furthermore, increasing numbers of visitors from Hong Kong and Taiwan
choose Hainan as their travel destination in lieu of remote islands
abroad. A trip from Hong Kong to Hainan can cost less than RMB 1,500,
June - July 2009 | 18
© Jakob Montrasio
Public and Private
Investment Plans
Amidst the crisis the government and private investors further focus
on large-scale tourism developments. Opposite to the coast of Sanya
the government plans to set up three marinas on Phoenix Island.
The bays of Haitang, Xiangshui, Qingshui and Shimei are subject to
further investment projects. The master plan foresees the settlement
of another 80 international hotels by the year 2016. These plans offer
attractive business opportunities for foreign investment since the
luxury hotels mainly utilise imported building services and engineering such as air-conditioning, elevator, safety and lighting technology.
As for the equipment of guest rooms, baths and kitchens, the fitters
favour furniture, mountings, ceramics and tableware from abroad.
Remarkable business opportunities also arise from the planned infrastructure projects of the province. Not only roads and bridges, but also
an expansion of the capacity for water treatment is in the making. The
city of Haikou projects to build three sewage plants. In addition to
that, more than USD 500mn are set aside for development proposals
in renewable energy. One of the most challenging showcase projects
is the planned 30km bridge that will connect the island with Mainland
China. At the end of 2008 the local government filed an application
with the State Development and Reform Commission. The ambitious
plan has existed since 2004, yet the international economic crisis and
Beijing’s USD 600bn stimulus package have added complexity to the
realisation of the project.
Hainan Overview
2008 Nominal
change
Gross domestic product (bn USD)
21.5
Population (mn)
8.5
GDP per capita (USD)
2,530
Imports (mn USD)
2.9
Exports (mn USD)
1.6
Number of tourists (mn)
19.6
- from abroad
1.0
Revenue from the tourism industry (bn USD) 2.4
9.8%
1.1%
8.7%
36.6%
16.3%
10.8%
-5.5%
10.3%
Source: Hainan Provincial Bureau of Statistics/ *real change
Dr. Roland Rohde is the Delegate General for Hong Kong, South
& West China of Germany Trade & Invest GmbH, the newly
merged foreign trade and inward investment agency of the
Federal Republic of Germany.
Tel: +852 2532-1277 | Email: [email protected]
The German Chamber of Commerce in China
West China - Chengdu
Chengdu’s IT Industry
Blue Chips like Intel, Siemens, SAP, IBM or Microsoft all have offices
and factories in Chengdu. Intel with its 2,500 employees has recently
closed a factory in Shanghai and moved all employees to Chengdu.
IBM cooperates with the Chinese electronic company Changhong –
the country’s biggest supplier of TV flat screens. The city also houses
the headquarters of IT giant Maipu, which had been visited by former
German Chancellor Gerhard Schröder some years ago.
The main reason behind the large investments of international IT companies is still the low salary level in Chendu, which brings savings in
labour costs of up to 30% compared to first tier cities like Beijing,
Guangzhou or Shanghai. Combined with the steady supply of highly
skilled graduates from UESTC, this provides a very attractive environment, especially for the well-known international IT players, which
are regarded as admired employers by the young graduates. German
companies are thus seeing future opportunities mainly in building up
high-end facilities for Research and Development.
www.china.ahk.de
Business Focus
Chengdu looks back on a long tradition in developing the region as
a hub for Information Technology in China. Already in 1956 the elite
University for Electronic Technology and Science (UESTC) was established in tight cooperation with the military. This has helped to turn
the province into one of China’s centres for IT and electronics today.
50 years later the early efforts still seem to bear fruits. Sichuan’s IT
industry has an annual growth of 20% and accounts for a trade volume
of about USD 5bn.
Chengdu High-tech Incubation Park houses over 300 software enterprises, R&D centres and
consulting firms, including the likes of Microsoft, SAP and Lenovo
© Imaginechina
The high amount of tellurium in the Sichuan region also provides
good conditions for the production of computer chips and solar cells.
This was also witnessed by the Minister of Economics of the state of
Brandenburg, Mr. Ulrich Junghanns, who visited Chengdu in March to
meet with Apollo Solar Energy, a local solar cell producer. Last but not
least, the provincial and municipal government contributes its part to
attract investment by tax reductions and free office space during the
first three years of operation.
November 2009 will bring a playful event to Chengdu. The finals of
the World Cyber Games will further underline the city’s status as the
capital of the Chinese internet gaming industry. OH
19 | June - July 2009
Yingtan - East China
The German Chamber of Commerce in China
Business Focus
Building a Future on H2O
Yingtan in Jiangxi Province is Set to Become a Centre of China’s National Water Industry
Located in the
city of Yingtan
a s t ra t e g ic
mity to
Zhujiang
Strait
natural
north-east of Jiangxi province, the
and its 1.2mn inhabitants enjoy
location. The proxithe Yangtze River,
Delta and Western
endow the city with a
transit role between
the southeast coast
and mid-western areas
inland. Heavy investments
into road and railway infrastructure have put Yingtan within
easy reach of large urban centres in
Zhejiang, Anhui and Fujian Provinces.
High-speed trains from Yingtan now
only take four hours to Shanghai,
whereas Nanchang’s Changbei
International Airport is a sheer
one hour drive away. This is supported by the national highways
320 (Shanghai-Kunming) and
206 (Jinan-Guangzhou), which
intersect at Yingtan.
This includes providers of water purification, sewage disposal,
reclaimed water processing and measuring technologies and equipment.
Y i ng t a n ’ s ra w ma t e rial base and its strong
copper industry and
independent electricity generation are meant to provide a good operating environment for
these companies. In terms of labour supply for potential investors, the
local government points to its jurisdiction of eleven counties and 6mn
population, of which 400,000 are currently migrating elsewhere to
look for work. Last but not least, the city’s ring network water supply
system with 0.1mn tons of potable water secures stable production
and living conditions.
Diversifying from Heavy
Industry
Yingtan has so far been mainly known as an industrial base for copper smelting and processing with some additional
production of electricity, chemicals, energy-saving lamps and glass.
Sulfides, gold and silk are the main raw materials of this area. Jiangxi
Copper Group Company is the largest copper smelting and production
base in Asia, ranking among the top three in the copper industry due
to its electrolytic copper productive capability of 0.8mn tons. In 2008,
Yingtan had a total production capability of 1.4mn tons of copper.
Sanchuan Water Meter Limited has been China’s leading enterprise in
the production and marketing of water meters for seven years. Guixi
Fuel Electric Plant is one of the main electricity generation bases in
eastern China with an installed capacity of 1.1mn KW.
With the national water industry developing at great speed, Jiangxi Provincial Government has put an emphasis on this rising sector as part of
the 11th Five-Year Plan. Particular focus is put on sewage disposal and
treatment. The annual output of water utilities is estimated to pass the
200mn ton mark at the end of 2010, an increase of over 15%.
Building a Hub for the Water Industry
Yingtan currently plans to set up a Water Industry Park in Longgang
New Zone, located between Yingtan Economic Technological Development Zone and Yujiang County. The total industrial area covers
16.4km2, of which 3km2 are set aside for investors from the water
industry. Road, water and electricity infrastructure are already set up.
The park is looking to attract predominantly companies active in
advanced treatment of water supply and sewage to settle in Yingtan.
June - July 2009 | 20
Longhu - Dragon and
Tiger Mountain
The birthplace of Chinese
Taoism lies only 20km to
the south-west of Yingtan.
The surrounding area boasts
six scenic spots (Shangqing
Palace, Zhengyi Palace, Xianshui Rock, Yingtian Mountain, Mazu Rock and Hongwu Lake) with
99 peaks, 24 rocks and 108 natural and cultural monuments.
Taoism culture, beautiful rock formations, clear water and mysteriously suspended coffins from the steep river cliffs make this
area a unique, but still not much visited treasure.
Yingtan Economic and Technological Development Zone provides
support to interested investors and organises site-inspections.
For further information please contact Ms. Xu Hui, Secretary of
Yingtan Economy and Trade Management Committee and
Mr. Lü Sheng, Section Chief of Yingtan Economy and Trade Management Committee
Tel: 0701 621-1058; 135 0701-8551; 137 0701-6946
Fax: 0701-622-3024 | Email:[email protected]
The German Chamber of Commerce in China
Business Focus
www.china.ahk.de
21 | June - July 2009

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